Omaha daily bee., 1887-12-08
THE FIDELITY BANK FRAUDS.
A Government Expert Gives Sem
sational Testimony.
A BAD RECORD MADE WORSE.
Direct and Minute Details of the Way
in winch Harper Bought
Wheat With other
Peoples Money.


CINCINNATI, Dee Tn the Harper trial
to-day Howard Ecltcrt was asked to identify
certain checks of his tirm which he did, as
follows; Hamill & Brincs, S95, 600; Wright
& Co, si6,5oO; Poole & Sherman, SlO,5OO;
Mcfarland & Co., S36,OOO Crosby Il Co.,
$4,000; Rosenfeld Il Co., sSs4, ,OOO Kcrshaw
&.Co, S35000o; Fleming 4 Boydcn, Ss6, 900;
making in all Sl,i;2, 900.
Maurice Rosentcd, of Chicago, testified
that he had dealings with Wcshrc. Eclert
& Co. He recognized an account current
with them for the parchasc of about 100000
bushels of wheat His house received
S3S9,500 in money.
The sensation of the day was tho testimony
of Frank NJ Hayes, an expert who had been
sent here ny the government to assist in tho
prosecution of the case. He said he was an
expert accountant aud had about ten
years experience in banks in all posi-
tons up to assistant cashier He
had made careful examination
of the books of the Fidelity National bank, of
the First National bank of New York and
of the Chemical National bank so far as they
relate to dealings with Harper and the Fidel-
ty bank. He had also examined the accounts
of Irwin, Green Il Co and G. j. Kers haw &
Co., with reference to their dealings with
iio'I'i anu Nil' 4 iNNliNS -Nt'iphui othN' iiO
said he found charge tickets at the Fidelity,
one of s2O0, 900, II credit to T.. l.. Harper. and
a charge against the First National bank of
New York and another of the same kind and
third for Sl0O,Q0O. Then, on March II, there
was one crcditing Harper with 100000 and
| charging the Chemical National bank of New
| York with the same amount From his ex-
| animation of the books of the First National
bank he found no such credits or charges and
| no money subject to the draft of the Fidelity
| bank. In the case of the Chemical National
| bank the Fidelity had Il credit there by reason
| of ii certificate entered on the books of tho
Fidelity. The First National had two ac-
| counts with the Fidelity and one showed
| credits to the Fidelity aud the other
overdrafts BY reference to both it
| appears that the Fidelity had 30 ITS credit
| March /, los1 but $4,000. One of the accounts
| at that time showed a credit of S2O90O and
| the other showed overdrafts to the amount OF
100000. On April these two accounts were
| consolidated, when there was S5s2 to the
credit of the Fidelity on the books of the
| First National of New York On April 30
| there was to the credit of the Fidelity $780,
| 600 on the boots of the First National Of
! New York by reason of two certificates OF
| deposit for 5000, ,OOO each, but these certt-
| Gates Of deposit were not entered on the
| Fidelity books. PREY Nious TO this time Har
| per was credited with 100000 and thus the
| books of the two banks were made to agree.
1
their books showed that the Fidelity had
| credit of $500, 900 marked "LOan,h and ip-
dicating that the Fidelity had borrowed
that that amont, but on the fideIity,s ,itS,s
| u loan and instead certificate of deposit for
S3OO,0 GOO issued and the stub is marked 'can-
| cclled.n Mr.. Hayes then traced from day to
| day how Tarpcr's credits had been exhausted
| by drafts, etc, and that it all went to tho
| persons interested in the wheat deal. Tho
| showing was minute and detailed and he fol-
| lowed out the entire $500 0OO in this way,
showing that of this sum there remained to
| his credit on March II but Si5, ,921. 20 Recurr-
ing to the First National, he said the draft
| record showed II draft by the Fidelity on the
| First Natioual for 100000. The First No
tional never paid that draft but Harper's ac-
count in the Fidelity is charged
April II with 100000, and this made
his books agree Witness stated
that two drafts drawn April - and 80 for
500, 600 each We're not entered on the Fideli-
tvs books until June Is, although one OF
them was paid in New York May 4. Hayes
then took up the accounts of Irwin, Green
~ Co and stated that the Fidelity's books
did not show such credits to their accounts
as the letters of advice indicated. Irwin,
Green & Co. credited IIoyt with $4,000. Ali
this except 81, ,S6l was drawn out by Harper's
| checks. There was no entry of letters OF
| credit TO Hoyt, amounting to S2S5,0OO, until
June Ii to 1S G. j. Kefshaw x Co. We're ad-
| vsed by four letters of credit that HOyt had
| deposited to their credit 800, ,00O. kershaw' g
books credit Harper with four amounts of
$50 600 each, corresponding in date to the
| letters of credit Witness went on to show
| that this 5000 600 was absorbed in the wheat
| deal. There was really but $iGl actually put
bank.
! Harpcr's attorneys made no effort to OBJ
scurc the light being thrown on theI clients
transactions by this witness.